Estate Tax Case Study

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Estate Taxes Student Name University Affiliation In order to understand the ethics in tax preparation and AICPA Code(s) of Professional Conduct rules, the essay will answer 4 questions based on estate tax case study. The discussion below highlights some of the application of ethics and principles in practice. 1. Under Circular 230, does Charles have any responsibility to inform the widow that she is being significantly overcharged by the attorney? Be sure to cite research that supports your position. Based on the difference between the fair charge, 3 to 5 percent, and the actual rate charged, 17%, by attorney to handle Clara’s estate work, it is clear that the fee was unreasonable. As such, the CPA has moral and statutory …show more content…

Firstly, the CPA is required to apply integrity when handling the estate tax work. In particular, the practitioner should be honest and candid in addressing the overcharge to the client since he is aware it exists even though it means going against the confidentiality about the attorney intent to profit from a widow (Rice, n.d.). Secondly, the practitioner needs to apply objectivity and independence in preparation of the estate work. This emanates from that if Charles considers the welfare of the attorney and his opinions on overcharge he may end up compromising the integrity rule. Therefore, he needs to be independent and objective to the right thing (Comparing the Ethics Codes: AICPA and IFAC, 2010). Moreover, the CPA is required to be responsible to ensure that all the rules in tax preparation are adhered to in his/her practice (AICPA Professional Ethics for CPA 's Contact Information, n.d.). Hence, Charles is responsible for informing the client about the overcharge as that is his role as a Certified Public …show more content…

Moreover, it goes against the bible to exploit people in need. References AICPA Professional Ethics for CPA 's Contact Information. (n.d.). Retrieved October 12, 2016, from http://www.cpaboard.wa.gov/individual-licensing/get-your-first-cpa-license/aicpa-professional-ethics-cpas-contact-information Blaise M. Sonnier, J.D., DBA. (2012). Circular 230: Its Day-to-Day Impact on Tax Practices. Retrieved October 12, 2016, from http://www.thetaxadviser.com/issues/2012/feb/tpr-feb12.html Circular 230 Tax Professionals. (n.d.). Retrieved October 12, 2016, from https://www.irs.gov/tax-professionals/circular-230-tax-professionals Comparing the Ethics Codes: AICPA and IFAC. (2010). Retrieved October 12, 2016, from http://www.journalofaccountancy.com/issues/2010/oct/20103002.html Ethics for Tax Return Preparers - media.straffordpub.com. (n.d.). Retrieved October 12, 2016, from http://media.straffordpub.com/products/ethics-for-tax-return-preparers-2012-08-28/presentation.pdf Rice, B. (n.d.). AMERICAN INSTITUTE OF CERTIFIED. Retrieved October 12, 2016, from

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